Peregraf
Kurdistan Region Prime Minister Masrour Barzani said on Tuesday that he has formally appealed to Iraq’s Federal Supreme Court in an effort to resolve the worsening salary crisis affecting public sector workers in the Region.
At today’s cabinet meeting, Prime Minister Masrour Barzani informed the Council that he had sent a letter to the Federal Court regarding the ongoing salary crisis, stating: "We await a ruling in favor of the Kurdish people."
The move comes as the crisis reaches a critical stage—18 days into June, salaries for May remain unpaid. Only four months of salaries have been disbursed in 2025, deepening economic hardship for thousands of families and intensifying tensions between Erbil and Baghdad.
On June 15, Iraqi President Abdul Latif Rashid and the President of the Federal Supreme Court, Justice Jassim Mohammed Aboud, held a high-level meeting in Baghdad to address the issue. According to a statement from the Presidency, the two officials emphasized the importance of legal solutions and cooperation among federal institutions to protect the rights of public employees.
President Rashid described the unresolved salary issue as a humanitarian emergency. "We must find a final and lawful solution to ensure the rights of KRG employees are protected and respected," he said. Justice Aboud echoed the sentiment, saying the Federal Court is committed to fulfilling its constitutional duty. "The salary crisis must be resolved in accordance with the law," he stated.
The Iraqi Finance Ministry has cited the full exhaustion of the Kurdistan Region’s 12.67% share of the federal budget for 2025, pointing to revenue reports audited by the Financial Supervision Bureau. In a letter dated May 28, Finance Minister Taif Sami said the KRG has failed to implement the Tawteen system, which requires salaries to be paid through federal banks. The Ministry’s stance has effectively blocked further transfers.
A source in the KRG’s Ministry of Finance told Peregraf on May 27 that May salaries are unlikely to be paid before Eid al-Adha, and that wages have been reclassified as a "liability," suggesting payments may be postponed until mid-July or later.
With no resolution in sight, the people of Kurdistan remain caught in a worsening standoff over rights, revenues, and responsibilities—one that could now be decided in Iraq’s highest court.